The entrepreneurship boom is real — and so is the hollowing out beneath it
By Christopher Wink
Published on May 3, 2026.
The US is experiencing a surge in entrepreneurship, with nonemployer businesses growing 76% from 1997-2020, while employer establishments grew only 16%. The share of new businesses hiring someone has also collapsed. The author suggests that the pathway from gig work or solo business into payroll-building firms appears weaker than the entrepreneurship narrative suggests. Since 2020, business applications have averaged 430,000 per month, 50% higher than pre-pandemic levels, and nearly 5.5 million Americans filed to start new businesses in 2023 alone. However, this shift is seen as a reversal of a decades-long trend of declining business dynamism. This shift in entrepreneurship could potentially lead to less competition, innovation, and less economic mobility.
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